Alterra Power Corp. Interim Period Update

TSX : AXY

VANCOUVER, Jan. 28, 2013 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) is
pleased to provide the following interim period update prior to its
year-end financial reporting, which is expected in late March:

Operations: Alterra's renewable energy output for 2012 was 98% of plan (individual
plant details will be reported in March).

Montrose Hydro Facility: The Montrose facility is currently shut for penstock repairs following
the December 12 rockslide. Replacement pipe for the 300 meter damaged
section has been ordered, and preparations for the repair continue. The
company expects the facility to return to full operations this summer.
The project's insurers have confirmed that the incident is covered by
property and business interruption insurance, and total insurance
deductibles related to the rockslide are expected to be less than $1
million for the project, which is 40%-owned by Alterra.

Upper Toba Hydro: Alterra is actively working with a construction contractor to finalize
the facility's design and construction costs. Discussions regarding
project lenders and partnership arrangements are in progress. Project
construction is planned to commence in 2Q 2013.

Drilling at Reykjanes Geothermal Field: The first well in a two-well drilling program has been completed at the
Reykjanes field. Initial indications for the completed production well
are positive, and further details will follow. Drilling for the second
well will commence shortly. The expected cost for the two-well program
is $9 million, which will be paid from cash reserves at HS Orka. The
new capacity expected to result from the drilling will be used for the
planned 80 MW expansion and as reserve capacity for the existing 100 MW
plant.

Chile / Peru Partnership: Alterra and Energy Development Corporation (EDC) are actively
documenting the next-phase agreement toward full partnership, while EDC
continues to conduct its due diligence in parallel. Management expects
any final arrangements to be completed within the first half of 2013.

Possible HS Orka Transaction: Alterra continues to discuss the sale of HS Orka with prospective
purchasers. Discussions have been complicated by foreign exchange
matters and required approvals from the Central Bank of Iceland.

2013 Operating Plan: Alterra expects a solid year of on-budget performance from its six
operating plants in 2013, other than the repair time required at the
Montrose hydro facility. Further, the company has been focused on
improving its cost structure in 2013, and has made the following
changes:

A reduction in development expenses for certain longer-term development
projects, resulting in annual savings of approximately $1 million.

Streamlining of global overhead, including staffing levels, which is
substantially completed and expected to result in further direct and
indirect annual savings of over $2 million.

Potential disposition of certain small, non-core development assets
which no longer fit Alterra's long term goals.

Further updates on these matters will be provided as part of Alterra's
year-end financial reporting.

About Alterra Power Corp.

Alterra Power Corp. is a leading global renewable energy company.
Alterra operates six power plants totaling 567 MW of capacity,
including two geothermal facilities in Iceland, a geothermal plant in
Nevada, British Columbia's largest run-of-river hydro facility and the
province's largest wind farm. The company's 298 MW share of production
capacity generates approximately 1,400 GWh of clean power annually.
Alterra also has an extensive portfolio of exploration and development
projects, a skilled international team of developers, explorers,
builders and operators to support its growth plans.

The company trades on the Toronto Stock Exchange under the symbol AXY and OTC in the United States as MGMXF.

Cautionary Note regarding Forward-Looking Statements and Information
This news release contains certain "forward-looking information" within
the meaning of Canadian securities laws, which may include, but is not
limited to, statements with respect to future events or future
performance, the fulfillment of all conditions precedent to the
obligation of the parties under the agreements, required consents and
third party approvals. This news release also contains statements with
respect to our plans to expand our operations, management's
expectations regarding our growth, business prospects and opportunities
and energy generation capacities. Such forward-looking information
reflects management's current beliefs and is based on information
currently available to management.